Finnish Consumer and Business Confidence very low – bad news!

According to the Finnish news service YLE, both consumer and business confidence is slipping. The trend regarding consumers is monitored through the ‘consumer barometer’ (in Finnish) and although it is obviously a sample of the wider population, it might be representative enough. The news explicitly states that the consumer confidence is at the lower levels of longer period (though not as low as in 2009).

Regarding business confidence, the Finnish employers federation EK reports that business confidence is very low, and especially in construction it is plunging (is this related to the possibility of a Finnish housing bubble?). I don’t know the construction of the confidence indicator EK uses but it is bad news.

It is bad news because as I aimed to indicate here, the Finnish economy was to some extent supported by fairly solid domestic demand. But if both consumer and business confidence go the way of the Titanic, then it is unlikely that the Finnish economy will rebound anytime soon because these ‘moods’ affect investment as well – in all likelihood.

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